V8 Supercars burn NSW taxpayers, says AG

NSW Treasurer
Eric Roozendaal
said that Sydney’s V8 Supercars race was good value for taxpayers, despite an audit showing its $35 million price tag will be exceeded by $10 million.

NSW Auditor-General
Peter Achterstraat
released a critical report yesterday on the government’s efforts to secure the popular race in 2008, saying it rushed into the deal with inadequate advice and after poorly executed negotiations.

Mr Achterstraat estimated that the $35 million price tag for the five-year deal would be exceeded by $10 million.

The proposed economic benefits were 24 per cent less than had been flagged by the government, he reported. He said that the December race day had been a success, with a total of 151,000 spectators attending, but questioned whether it was a good deal for taxpayers.

“The V8 Supercars race at Homebush Bay was managed well on the day, and by all reports the spectators enjoyed themselves," he said.

“But a good day is not the same as a good deal."

In Parliament, Mr Roozendaal defended the money spent in securing the race, saying it would boost the state’s economy by $100 million over five years and provide Sydney with valuable media exposure nationally and overseas.

“Considerable economic, social and community impact was generated by the event," he told the Legislative Council.

Related Quotes

Company Profile

“I look forward to this year’s event, which will be bigger and better."

Mr Achterstraat said that in its rush to stitch up the race, cabinet failed to consult properly with experts at Events NSW, who raised concerns with then premier
Morris Iemma
that there was a need for more due diligence.

Events NSW also warned the premier that the race afforded “minimal return on a very large investment". The negotiation process was “not well planned" and “disjointed" and was rushed because of the tight timeline to sign up to the deal, the report said.

Media reports that the government had given in-principle support months before the deal was signed also weakened the government’s negotiating position with V8 Supercars Australia, Mr Achterstraat said.

The opposition’s major events spokesman,
George Souris,
accused Mr Roozendaal and then state development minister Ian Macdonald of ignoring advice from Events NSW to “indulge their passions" for motor racing.

“This was a bad deal, and worse than that, this government remains in denial over its handling of this bad deal," Mr Souris told ­reporters.

“The deal was bad because all the methodology, all the costings, all the principles that ought to have been in place were ignored.